Student Name:
Class:
13,145$ 8,100$
12,645$ 12,645$
Correct! Correct!
Entry Account Debit Credit
(a) 6,270 <–Correct!
6,000
Notes Receivable
Cash
Requirement 2:
Cash Adjustments
Company balance per
Company’s Cash Balance
Bank’s Cash Balance
February 28, 2021
Per Bank Statement
Bank balance per
Problem 04-02
Bank Reconciliation
McGraw-Hill
Instructor
OSCAR’S RED CARPET STORE
OSCAR’S RED CARPET STORE
Requirement 1:
reconciliation
Per general ledger
reconciliation
Interest on note
Deposits outstanding
Checks outstanding
Service fees
NSF check
Company error
EFT for rent
Interest on account
Note collected
Date Amount No. Date Amount
2/4 2,700$ Checks: 321 2/2 4,700$
327 2/28 1,900
6,800$ 12,600$
13,900
(12,600)
8,100$
a. 13,145$
NSF check in 2/11 deposit
Check 323 correctly recorded by bank
Automatic withdrawal for February rent
Interest earned on checking account
Interest earned on loan to supplier
Service fees charged by bank
Cash receipts outstanding from 2/26-2/28
Checks outstanding:
Given Data P04-02:
Receipts
Disbursements
Balance on February 28
Balance on February 1
February 28, 2021
Cash Ledger
OSCAR’S RED CARPET STORE
Additional information:
Ending cash balance from bank stmt.
Deposits
Cash receipts:
Student Name:
Class:
6,210$ 5,100$
Entry Account Debit Credit
Cash
Service Fee Expense
Accounts Receivable
(a) 1,190 <–Correct!
1,100
90
DIAZ ENTERTAINMENT
Requirement 2:
Interest Revenue
Notes Receivable
Cash
Cash Adjustments
Per bank statement
Per general ledger
Problem 04-03
McGraw-Hill
Requirement 1:
Instructor
Bank Reconciliation
DIAZ ENTERTAINMENT
May 31, 2021
Bank’s Cash Balance
Company’s Cash Balance
Service Fees
Note collected
Bank balance per
Company balance per
Checks outstanding
Deposits outstanding
Bank error
Interest earned
NSF check
Cash Balance Cash Balance
May 1, 2021 Deposits Checks May 31, 2021
5,280$ 12,040$ 12,220$ 5,100$
Date Desc. Amount Date No. Desc Amount
No. Total No. Total
7 10,050$ 9 10,100$
Date Amount Desc. Date NO. Amount Desc Date Amount
Nonsufficient funds
Service fees
Customer check
Interest earned
May 20 EFT made by bank in error
470
469
Outstanding checks at April 30, 2018:
Deposits and Credits
Beginning Balance
Deposits and Credits
May 1, 2021
6,260$
Given Data P04-03:
MIDWEST BANK
Withdrawals and Debits
Withdrawals and Debits
Daily Balance
6,210$
Checking Account Statement
Ending Balance
May 31, 2021
May 31, 2021
Diaz Entertainment
DIAZ ENTERTAINMENT
Cash Account Records
May 1, 2021 to May 31, 2021
for
Deposits
Checks
Legal fees
Property tax
Student Name:
Class:
Date Account Debit Credit
(Pay prepaid insurance)
Cash
Prepaid Insurance
(Receive membership dues in advance)
Deferred Revenue
Cash
(Pay current month salaries)
Cash
Salaries Expense
(Receive current month utilities bill)
Utilities Payable
Utilities Expense
October 2 8,500
8,500 <–Correct!
October 12 1,500
1,500 <–Correct!
October 19 4,400
4,400 <–Correct!
(Receive membership dues)
Service Revenue
Cash
Advertising Expense
Cash
Dividends
(Pay for current month advertising)
Cash
(Pay dividends)
McGraw-Hill
Instructor
Problem 04-05
BALBOA‘S GYM
Transactions
Requirement 1:
Equipment
(Issue common stock)
Common Stock
Cash
Accounts Payable
Cash
Student Name:
Class:
McGraw-Hill
Instructor
Problem 04-05
Debits Credits
October 1 16,600 4,800 October 9
Cash at the beginning of the month
Net cash flows from financing activities
Net increase in cash
For insurance
For salaries
Purchase of boxing equipment
Issuance of common stock
Payment of dividends
Net cash flows from operating activities
Cash Flows from Financing Activities
Net cash flows from investing activities
Cash Flows from Investing Activities
Correct!
14,100$
(1,500)
Beginning cash balance
Correct!
17,800
Correct!
Ending cash balance
Requirement 5:
Cash Outflows:
For advertising
Requirement 4:
Cash inflows:
Cash Flows from Operating Activities
From customers
Cash
Requirement 3:
For the month ended October 31
Statement of Cash Flows
BALBOA‘S GYM
October
28,500$
512,000$
16,600$
Issue common stock for cash
Beginning October cash balance
Additional Information:
BALBOA‘S GYM
Given Data P04-05:
Receive membership dues for October
October Transactions
Purchase boxing equipment:
Price of equipment
Cash paid at time of purchase
Pay for advertising
Pay dividends to stockholders
Pay six months’ liability insurance beginning Nov. 1
Receive cash in advance for November memberships
Receive but do not pay utility bill
Pay employees’ salaries for month